Merit Medical Systems, Inc. (MMSI Quick QuoteMMSI - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by solid product performance, global expansion and strategic M&A, is expected to contribute further. However, tariffs and trade policy headwinds and China macro pressure persist.

This Zacks Rank #2 (Buy) company’s shares have lost 1.2% in the year-to-date period against the industry’s 4.7% growth and the S&P 500’s 13.1% rise.

The renowned medical device provider has a market capitalization of $5.10 billion. The company projects 10.4% growth for the next five years and expects to maintain its strong performance going forward. It delivered an average earnings surprise of 14.1% for the past four quarters.

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Let’s delve deeper.

MMSI’s Growth Drivers

Broadening Product Portfolio: Merit Medical is strengthening growth prospects through a diversified portfolio spanning cardiology, radiology, oncology, endoscopy, critical care and renal therapies. Recent launches such as the Resilience Through-the-Scope Esophageal Stent and SCOUT MD, along with the acquisition of View Point Medical and integration of Biolife, are expanding its presence across high-value procedures. The company is also advancing C2 CryoBalloon production and developing new technologies, supporting a more balanced and innovative product mix.

WRAPSODY Adoption Opportunity: WRAPSODY Cell-Impermeable Endoprosthesis represents a significant longer-term opportunity in dialysis access management. Clinical data from the WAVE trial demonstrated durable patency benefits versus balloon angioplasty, supporting the device’s clinical proposition. Merit Medical is working to rebuild account activity following the recall and expand adoption across hospital and non-hospital settings. Continued physician engagement and positive feedback on the delivery system could gradually strengthen WRAPSODY’s contribution to renal therapies.

Innovation, Global Expansion and Strategic M&A: Merit Medical’s continued investment in R&D provides a pipeline for renewing and expanding its product franchises. Its development model incorporates physician feedback while management’s 2027-2029 strategic planning process is prioritizing attractive product opportunities and potential tuck-in acquisitions. The company’s international presence across Europe, Asia Pacific, the Middle East and other markets provides additional avenues for commercialization. A focused M&A and capital-allocation strategy could further strengthen its exposure to high-growth procedures.

Key Challenges for MMSI Stock

Tariffs and Cost Pressure: Tariffs represent a significant challenge because they can raise manufacturing, sourcing and distribution costs. Management reportedly included approximately $16 million of tariff costs in its 2026 earnings outlook, creating a direct risk to profitability if trade restrictions intensify or cost increases cannot be passed on to customers. Tariff uncertainty can also make quarterly margins less predictable. Higher costs could offset benefits from favorable product mix, productivity initiatives or revenue growth.

Reimbursement, Pricing and International Weakness: The adoption of premium products such as WRAPSODY depends partly on reimbursement decisions and the timing of broader payer coverage. Delays could slow commercialization and reduce expected revenue growth. Merit Medical also faces pricing pressure from hospitals, group purchasing organizations and China’s volume-based procurement system. China pricing may remain difficult, and weaker OEM demand can make revenues more volatile. These pressures may limit margin expansion even if procedure volumes remain healthy, particularly in international and OEM businesses.

Merit Medical Systems, Inc. Price

Merit Medical Systems, Inc. price | Merit Medical Systems, Inc. Quote

Estimate Trend

MMSI is witnessing a stable estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has remained unchanged at $4.30.

The Zacks Consensus Estimate for the company’s third-quarter 2026 revenues is pegged at $410.4 million, suggesting a 6.8% rise from the year-ago reported number. The consensus mark for EPS is pegged at $1.04, implying 13% growth from the prior-year reported figure.

Other Stocks to Consider

Some other top-ranked stocks from the broader medical space are OPKO Health (OPK Quick QuoteOPK - Free Report) , Globus Medical (GMED Quick QuoteGMED - Free Report) and West Pharmaceutical (WST Quick QuoteWST - Free Report) .

OPKO Health, currently sporting a Zacks Rank #1 (Strong Buy), has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

OPKO Health’s shares have gained 24.6% against the industry’s 4.9% decline in the year-to-date period.

Globus Medical, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

Globus Medical’s shares have lost 12.3% compared with the industry’s 4.9% decline in the year-to-date period.

West Pharmaceutical, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

West Pharmaceutical’s shares have jumped 36.9% compared with the industry’s 4.7% growth in the year-to-date period.